Gevo signs SAF sales agreement with American Airlines for 100 million gallons per year for five years
Gevo announced a new fuel sales agreement with American Airlines for the sale of 100 million gallons per year of sustainable aviation fuel (SAF) for five years from Gevo’s future commercial operations.
Gevo’s delivery of SAF under this agreement is expected to begin in 2026. Gevo estimates that the agreement should generate approximately $2.75 billion of revenue over the five-year term, inclusive of the value of environmental benefits. The Agreement with American Airlines is the single, largest fuel sales agreement ever entered into by Gevo with a customer.
American Airlines is a member of oneworld global alliance (oneworld), and this agreement falls under the purview of memoranda of understanding (MoU) that oneworld members and Gevo signed earlier in 2022, laying the groundwork for the 14 airlines in the alliance to purchase 200 million gallons of SAF per year, from Gevo’s future commercial operations.
This SAF purchase agreement expands the list of committed airline partners and supports Gevo’s pursuit of its stated goal of producing and commercializing a billion gallons of SAF by 2030.
In September 2020, oneworld became the first global airline alliance to announce a target of carbon neutrality by 2050, establishing its commitment to long-term sustainability for the industry. The alliance followed up that commitment with an intermediate goal to achieve 10% SAF use across the member airlines by 2030.
The agreement with American Airlines is subject to certain conditions precedent, including Gevo developing, financing, constructing and operating one or more production facilities to produce the SAF contemplated by the agreement.